Tennessee Realtor State Practice Exam

What act did Jerrold commit when he exaggerated the size of the house in his advertising?

1. Negligent misrepresentation

2. Intentional misrepresentation

3. False advertising

4. Consumer deception

The correct answer is: Intentional misrepresentation

Jerrold committed intentional misrepresentation when he exaggerated the size of the house in his advertising. Intentional misrepresentation occurs when a person knowingly provides false information with the intent to deceive another party. In this case, by deliberately inflating the size of the house, Jerrold intended for potential buyers to be misled into believing they were getting something more substantial than what exists. This act can lead to legal consequences as it undermines the trust essential in real estate transactions and can affect a buyer's decision-making process. The other options describe scenarios that can involve misleading statements but do not capture the intent behind Jerrold's actions. Negligent misrepresentation refers to situations where a person fails to take reasonable care in providing information, but it lacks the conscious intent to deceive that is present in this situation. False advertising generally pertains to misleading or false claims made in promotional materials, but the specific context of a misrepresentation that involves knowledge of falsehood points more directly to intentional misrepresentation. Consumer deception is a broader term that encompasses various forms of misleading consumers without focusing on the intent behind specific claims.